Lenders underwriting residential and commercial property serving as collateral support a mortgage or loan typically requires an appraisal of the subject property to determine value and possible risks. Unfortunately, it is a very intensive and costly process for a lender to review each appraisal thoroughly and consistently. At present, lenders are not able to review appraisal with a sufficient level of detail systematically and economically. Problem appraisals, and problem areas in appraisals, may thus be overlooked, and the lenders may find substantial sums at risk.
Similarly, loan servicing and capital markets have used broker price opinions (BPOs) as the primary source of property valuation information. With the collapse of the real estate market, the demand for BPOs increased significantly. However, there are no consistent standards or forms for BPO reports or the data to be considered or included.
Accordingly, what is needed is a standard BPO form and an improved, automated process of BPO review that achieves a level of review heretofore not available on a systematic or economic basis.